Sept 22 (Reuters) – Compass (COMP.N), opens new tab, the largest U.S. residential real estate broker, is set to buy Anywhere Real Estate (HOUS.N), opens new tab in a deal valued at $4.2 billion, as it looks to strengthen its portfolio amid rising competition in the stagnating housing market.

Elevated mortgage rates and resulting consumer affordability challenges in the U.S. have pressured profitability for homebuilders and real estate firms in recent quarters.